In business operations, it is necessary to keep a constant eye on the numbers. This would help in the healthy financial status of the firm. Only in the United States, 17.6 million people were affected by identity theft which resulted in a loss of about $15.4. It is necessary for especially financial institutions to keep a track of the money movement and transactions taking place on a daily basis. The funds should be clean and accountable in order to ensure the legal money movement in and out of the system.
Today, illegal money transfer and money laundering activities are becoming the norm. Therefore it is necessary for businesses to perform online identity verification in their system. This would help them prevent possible online payment scams.
Following are the businesses who should adopt the identity verification system:
- Financial Institutions
Financial institutions are more exposed to identity theft and money laundering activities. Whenever we enter banks, the very first thing for evaluation is the identity card. Manually at banks, firstly identity is verified against you for further process. Banks that provide online account opening facility need to ensure online identity verification.
Today many banks support multiple types of facilities. These include id card verification, facial verification, iris scanning, and verification and document verification. This helps financial institutions perform their evaluations to ensure fraud prevention.
- Insurance Companies
Criminals are using illegal ways to steal the identity of a particular person. Medical identity theft is getting common through which fraudsters get the social security number and personal information of a person to get free medical checkups, financial insurance details, and other insurance information. This results in more payment of insurance premiums by the victim.
The medical industry is introducing new ways of identity verification, especially biometric to avoid any kinds of risks that can result in loss of hospitals or patients.
- Travel Agencies
Fraudsters can use your identity for traveling purposes. Although for this, many supportive measures are needed for fraudsters such as documents, ATM card number, and password, etc. therefore, identity verification should not only be based upon documents and the information that has chances to be stolen. Biometric verification should be done in order to prevent identity theft.
- Online marketplace
The online marketplace which includes e-commerce websites needs to protect their system with online identity verification. This would help them protect their system from online payment scams and credit card fraud.
The online marketplace is more prone to be dodged. To avoid greater risks and loss, any identity requesting to enter into the system should be verified.
- Real Estate
Many companies create shell companies for the purpose of money laundering. This is how real estate faces greater loss. As in real estate, the loss means something really big, it could be property or some expensive assets having huge value. For the verified entities to enter in the system, there should be an identity verification mechanism that helps real estate prevent the risks of bee cheated.